Medical office real estate is a fantastic investment in today’s market. If you’re looking to invest in Fredericksburg, VA, there are plenty of options to suit your portfolio’s needs. Here are some current trends in the medical office real estate market in Fredericksburg.
The office market is stabilizing, including medical office real estate
According to Coldwell Banker Commercial Elite’s annual report, “the office market in the Fredericksburg Region experienced a high performance year in 2016, and those trends seem to be continuing into 2017. Last year we experienced a strengthening office market with the region recording the highest positive net absorption in a single year than in the past three (3) years combined. During the first quarter of 2017 the office market experienced another quarter with positive net absorption and declining vacancy. As of Q1-2017 the Fredericksburg region has now recorded 4 consecutive quarters with declining office vacancy. In addition to declining vacancy and a rise in net absorption the market is also witnessing an increase in demand with new construction.”
There’s a growing demand for specialized senior health medical office real estate
One of the rapidly growing markets in medical office real estate are facilities that care for the health of senior citizens. This includes specialized housing, medical imaging, memory care, oncology facilities, and more. With seniors living longer, healthier lives than ever before, there is a greater need for infrastructure to meet their growing needs.
Overall office demand continues to rise
CBCE reported, “the Region’s office market continued to experience a rise in demand throughout 2016 and into 2017. In the first quarter of 2017, the office market recorded over 41,000 sq. ft. in positive net absorption. This marks the 4th consecutive quarter with positive net absorption with a total of 231,000 sq. ft. of office space absorbed. This marks the first period, since 2012, where the office market has recorded 4 consecutive quarters of positive net absorption. During this previous time span, from Q1-2012 to Q4-2012, the market recorded 214,000 sq. ft. of net absorption, which is still 17,000 sq. ft. less than current 12 month absorption (Q2-2016-Q1-2017). Leasing activity also remained above average to start the new year with over 101,000 sq. ft. of office space leased in Q1-2017. This is a great start, following a stellar year in 2016 where over 470,000 sq. ft. of office space was leased. Stafford County led the way with over 23,000 sq. ft. of net absorption and 27,000 sq. ft. in leasing activity in Q1-2016. Stafford was followed closely by the City of Fredericksburg, which recorded 16,000 sq. ft. in net absorption and over 38,000 sq. ft. in leasing activity”
In summary, now is an excellent time to invest in commercial medical real estate in Fredericksburg. Don’t wait! Contact us today to find to perfect property to add to your portfolio.